COIMBATORE: The continuing West Asia crisis is disrupting Kongu region’s export trade, with industries facing higher raw material and freight costs, container shortages, rising marine insurance premiums, uncertain delivery schedules and mounting working capital requirements, industry representatives have said.
A 40-foot reefer container from Tuticorin to New York, which earlier cost around $5,500, is now reportedly costing nearly $10,000. Similarly, freight from Visakhapatnam to the US West Coast, including Los Angeles, has risen from around $6,000 to $11,000, they said. Exporters have reported a sharp rise in freight costs on key India-US routes. You Can Also Check: Gold Rate in Coimbatore | Silver Rate in Coimbatore | Bank Holidays in Coimbatore | Public Holidays in Coimbatore | Coimbatore AQI | Weather in Coimbatore | Petrol Price in Coimbatore | Diesel Price in Coimbatore | CNG Price in Coimbatore | LPG Price in Coimbatore Stay updated with the latest Coimbatore news.
ICCI Coimbatore chapter president C Dorairaj said the disruption had affected the availability and pricing of petroleum-linked raw materials, raising input costs and reducing the operating capacity of manufacturing units. Govt has acknowledged that the situation has resulted in longer sailing routes, congestion at transhipment hubs and conflict-related surcharges, industry representatives said. K V Karthik of the Indian Pump Manufacturers Association said container shortages, higher freight rates which are three times higher and uncertain transit times were making it difficult for exporters to meet delivery commitments. He said exporters had raised concerns over unexpected charges imposed by Non-Vessel-Operating Common Carrier (NVOCC) operators, shipping agents and consolidation agents beyond agreed freight rates.
The Indian Chamber of Commerce and Industry (ICCI), Coimbatore chapter, has urged the Federation of Indian Chambers of Commerce and Industry (FICCI) to take up the concerns with the Centre and seek urgent relief for exporters dependent on uninterrupted maritime logistics. The crisis has also led to vessel diversions, longer sailing routes, congestion at alternative ports and substantial increases in freight and related charges. The disruptions could result in order cancellations, loss of customer confidence, reduced export competitiveness and deferment of new orders. Disputes over such charges could lead to withholding of delivery orders, leaving cargo stranded at destinations, demurrage, container freight station (CFS) rent, port storage and reefer plug-in charges. The ICCI has sought steps to improve container availability, rationalise freight rates, regulate additional charges and strengthen monitoring of logistics intermediaries. It has also called for a pan-India grievance redressal mechanism, priority handling for reefer and perishable cargo, relief from disruption-related charges, extended repayment schedules for export loans and enhanced export support. Download the TOI App.